Broadcast advertising and US demand for alcoholic beverages

Quarterly data for 1977-1994 on alcohol consumption and advertising are use d to estimate a differential demand system, including explanatory variables for broadcast advertising and print advertising. The model explains the gr owth rate of per capita consumption dependent on explanatory variables for prices, real income, demographic changes, and real advertising by media and beverage. Empirical results also are reported for total consumption of pur e alcohol. The results for the three beverages and total alcohol indicate t hat advertising has little or no effect on demand. The empirical evidence t hus supports the notion that regardless of media, advertising affects mainl y brand shares.